Update 6/8/20: There is a list of excluded properties for the free night certificate. So even if a property costs less than 40,000 points you won’t be able to use the certificate there.
Update 6/2/20: Properties that price under 40,000 points due to this dynamic pricing are currently not bookable with the Chase IHG free night certificate. It lets you start the booking process but eventually errors out. IHG has confirmed this is an error and is working on a solution to fix it. It seems it doesn’t affect all users/all properties but you may run into it. Hat tip to TPG
Original post: In 2019 IHG confirmed that variable point pricing would be introduced, but provided few details. Last month we saw the introduction of this variable pricing on some Asian properties. Variable point pricing is now showing as live on both domestic properties and properties in Europe. Based on the searches I’ve done so far, all pricing seems to currently be cheaper than anything previously offered. That being said I would make two points to advise caution on this continuing:
- COVID-19 has lead to a dramatic decrease in demand which could be causing variable point pricing to be lower than it normally would
- IHG has a history of making a ‘positive’ change only for it to turn out to be a negative. For example when the revamped IHG PointsBreak stayes were launched with 10,000 & 15,000 tiers we saw a lot of great properties in the new 10,000/15,000 tiers for the first few released before the quality disappeared entirely.
If you have an existing book then it’s definitely worth checking to see if rebooking makes sense. Just make sure there is availability as if you cancel there are no guarantees that room will go back into award inventory. Not all properties are showing this new variable pricing. It also doesn’t seem like the points is tied to the cash rate of the property.
Hat tip to reader Casey K
The excluded list you linked to states that you can use the certificate when these locations price at 40k points or less. Was just able to book a night at the IC Willard with my cert.
I agree. The person who originally wrote this post on FT mis-understood the language that IHG used to announce this matter — it was easy to do so as the language is opaque and confusing.
The operative word in the announcement in my opinion is “current” and I believe IHG was trying to say that if these hotels fall at or below 40,000 points, then you could book them with the annual certificate.
I think the issue crystallized when IHG’s IT system at this roll-out or before, did not let people book these properties even when they did fall at or below 40,000 points.
However, now that Kirby has confirmed that he was able to book the Willard with his certificate, the dynamic booking system seems to be working with respect to the annual certificates, as well!
Please William, amend your notation, as it is fundamentally in error and based upon an initial faulty understanding of the language.
I’ve checked a lot of properties in Europe and the USA and I’m not seeing this “variable pricing.” The rates seem to be the old rates. How prevalent is this new pricing structure? FWIW, it it were to be widely implemented, the value would definitely be for those with the 40K capped Chase Free Night certs. There are a lot of decent (not necessarily fabulous) IHG properties at 45 and 50K that now would be bookable using those certs. Otherwise, those properties are rarely worth their point value.
A bit off topic but…
Usually when you book a regular paid night, you can add breakfast for a reasonable amount at booking. Does anyone know if it’s possible to do that when redeeming points? I’m hoping that it might be a side benefit of reward nights functioning more like paid nights.
No, it is not available on award redemption.
Did anyone see that it looks like they are charging points stays taxes now and some other Destination fee from how it looks?
I booked a stay at the Kimpton Glover in DC for August. It looks like dynamic pricing is in place because depending on the day of the week, the points change from 22,500 to 20,000. Pre-COVID, the awards stay would have been 50,000 points. My notes (also from pre-COVID) show that at least the Kimptons in DC charge taxes on awards nights, and I still have to pay the destination fee of $28.74 per room per day.
Hotels are dead. I have never seen so many closed hotels. IHG is taking business from Marriott, Wyndham, Choice, Best Western, Radisson, Hyatt etc. This is so so so smart. Not many travelers now and IHG wants to maximize its business. IHG wants to survive and THRIVE.
I just stayed at Days Inn Berlin, Connecticut for 7,500. Nothing to do with Berlin Germany. It is at the base of a beutiful mountain. Great view. Great deals to be had now.
With the free night certificate up to 40k points, can we get those better properties during their lower demand periods?
Yes
Chase certificates are not working for the lower point offers. IHG website will take you all the way through the booking but will not confirm. Call center is unable to make the booking.
This is correct. I have been trying to make several bookings at hotels now pricing at or under 40k/night using my certificates and they don’t work.
As of yesterday, June 8th, I have been able to book several Intercontinental hotels pricing at or under 40k/night using my Chase certificates.
Looks to me that they are also implementing the ability to use the Chase 40k cert at hotels pricing over 40k with an up charge. Seeing this at IC Willard, IC Montreal, and Kimpton Alexandria.
Roughly how much is the upcharge per extra point over 40k?
It varied. $50 for 5000 points (45k per night) in one case. $65 for 20000 points (60k) in another. And there were taxes in addition for the cash portion.
I’m not positive, but I don’t think you are buying these points. I think the charges are due at the time of your stay. I did not see the disclaimer that you are buying points.
This feature would absolutely make IHG cards keepers, even the $89 AF card. Did you see any indication whether you’d be able to use your existing points stash towards the upcharge?
Following up… I’m seeing different behavior now. Looks like IHG’s IT team is trying to clean up their rollout. As of now, I can bring up prices on the IC Willard and whether the price shows 40000 points or 70000 points there is the option shown to use the Free Night cert. But now, no add on price is showing for those nights above 40000.
Anyways, it errors out when you try to book it anyway.
Hopefully we’ll see this functionality soon, but it appears the IT team has some problems to address first.
I had spoken to a US rep during the early days of the Covid crisis and he did advise me that they were going to implement an up-charge should one wish with respect to the Free nights, so I would wait until IHG implements this.
I also expect that they will eventually iron out the issues with respect to those hotels that decline in points so that they could then be used with the up to 40,000 point free night certificate.
As to dynamic pricing, I am glad that I got the IHG premier card at the alternate Free First Year pricing and 75,000 point bonus that is also available now. I have seen many places in the USA and Europe that have implemented this — but don’t expect to see this at many Intercontinental hotels.
Finally, I am still waiting for them to assign point values and prices to the Mr/Mrs Smith hotels — free night upcharges likely will be able to be used with respect to these, as well.
Do you have any pics of when the upcharge was showing?
Sent you an email.
No, we were just talking in generalities. I was surprised that I got a US rep and he said that the Philippine call center was shut down due to Covid and a typhoon threatening — this was a couple of weeks ago.
I just want to be clear that he only seemed to indicate that the upcharge would be a point upcharge, but I must admit I was only asking about such a circumstance as I have so many points that buying an upcharge did not seem reasonable to me.
If IHG actually implements this policy, I have no idea whether and how they will do so — strictly a $$ upcharge or points up charge or a hybrid of the two. And remember, this is IHG, this could prove to be stillborn as we are still waiting for them to implement $$ or points for the Mr/Mrs Smith properties.
That would be really good change.. as it would open up high end properties for the certificate, basically turning it into 40K points. Can you pay the extra by the points in addition to the cert? Not the money? If you saying that we are essentially buying the points by paying an upcharge, then it kind of works the same way as points+cash rates…
Thanks for the info!
Outside of the pandemic, this is a huge devaluation. No upside to it. It will be like Hilton or Marriott. Everything will be peak. A lot of 40k properties won’t be available. So double whammy, points worth less and certs worth a lot less. The only people this benefits is offseason travelers.
Inevitable I guess. Even Hyatt did it. Really sad. SPG was a program I was part of even without ability to churn points–SPG card was well worth it. Hyatt is still worth it. Nobody understanding these programs who isn’t churning or gaming would not participate. Plenty non-gamers who don’t understand the valuations still will, but all these devals are eventually gonna kill these loyalty programs.
Be careful to have your 4th night be the most expensive or it can backfire. Pricing your nights without groups of 4 can be cheaper sometimes for some weird reason. Yesterday I had one booking where the 4th free “reduced” my daily average from 22K to 25K.
All this airline and hotel dynamic pricing is great territory for online bookers who can run programs to optimize.
That second bullet point though 😄
It’s definitely a negative. Now IHG can change price anytime behind your back. That’s not to say it hasn’t done that before, but it will be standard practice going forward. You can’t even plan for it now regarding how many points you need to have.